Stocks in the U.S. opened with losses as investors returning from Monday's MLK holiday joined in the risk-off sentiment that weighed on global markets amid concern about the spread of a new coronavirus in China. However, declines for the S&P and Dow have remained modest and the Nasdaq has managed to make it back narrowly into the green near noon.
ECONOMIC EVENTS: In the U.S., no market moving economic data was reported. Of note, the IMF issued a forecast for global growth of 3.3% this year, up from the projected 2.9% for 2019 and marking the fund's first projected acceleration in growth in three years.
TOP NEWS: Shares of pharmaceutical makers are among the day's outperformers amid reports of a new respiratory virus originating in China that has infected almost 300 people and killed six. Meanwhile, Macau casino operators Las Vegas Sands (LVS), Wynn Resorts (WYNN) and Melco Resorts (MLCO), as well as a number of other travel-linked stocks, are under pressure on investors’ concerns over the potential impact on tourism as the virus continues to spread.
Halliburton (HAL) reported better than expected fourth quarter earnings and revenue, noting that in 2020 it expects its international growth to continue and for its North American customer spending to be down again this year.
VF Corporation (VFC) announced it is commencing a review of strategic alternatives for the occupational portion of its Work segment in a bid to make that business "into a more consumer-minded and retail-centric enterprise." Following the news, Gordon Haskett noted to investors that a deal "isn't going to move the needle dramatically" for VF Corp., but it will add to the company's financial flexibility, leaving the big question of "when it might add a consumer business to its mix." The analyst at Gordon Haskett said "the name we have in mind continues to be Columbia Sportwear (COLM)," echoing some comments made by deal-focused publication Dealreporter, which said in its own flash note to its subscribers that it believes brands such as Yeti (YETI) or Columbia Sportswear could be potential targets if VF "were to look for a more transformative deal."
MAJOR MOVERS: Among the noteworthy gainers was Owens & Minor (OMI), which rose 18% after Baird analyst Eric Coldwell upgraded the stock to Outperform from Neutral. Also higher was Beyond Meat (BYND), which gained 14% after the CEO of Starbucks (SBUX) said in a public letter that the company wants to add more plant-based options and move "toward a more environmentally-friendly menu."
Among the notable losers was Arrowhead Pharmaceuticals (ARWR), which fell 13.5% after SVB Leerink initiated coverage of the stock with an Underperform rating and $32 price target. Also lower was WW (WW), which slid 9% after Noom said that 55,000 signed up to lose weight with the smartphone app on New Year's Day.
INDEXES: Near midday, the Dow was down 20.09, or 0.07%, to 29,328.01, the Nasdaq was up 3.01, or 0.03%, to 9,391.95, and the S&P 500 was down 1.16, or 0.03%, to 3,328.46.
Halliburton
+0.41 (+1.71%)
VF Corp.
+0.43 (+0.46%)
Columbia Sportswear
+2.5 (+2.62%)
Yeti
+1.72 (+5.02%)
American Airlines
-0.54 (-1.90%)
Delta Air Lines
-2.23 (-3.60%)
United Airlines
-2.96 (-3.30%)
Las Vegas Sands
-3 (-4.05%)
Wynn Resorts
-6.53 (-4.31%)
Melco Resorts
-1.7 (-6.80%)
Owens & Minor
+0.97 (+17.57%)
Beyond Meat
+14.22 (+13.02%)
Starbucks
-0.53 (-0.57%)
Arrowhead
-7.37 (-13.06%)
WW
-3.43 (-8.18%)